Whole Life Insurance

Whole life insurance is probably the most well-known type of life insurance – but it’s also one of the most expensive.

Basically, a whole life insurance does what its name implies: it covers you for your whole life.

It also has something called a cash value. The cash value is actually something you invest in. It is tax-deferred, and your cash value will increase (albeit slowly) over time.

If you need that cash value, it is possible to borrow some money from your whole life insurance policy. However, you need to repay what you borrow – with interest.

If you don’t make those payments, the policy’s payout (which goes to the insurance company, not your family members) will decrease.

However, there are some benefits to whole life insurance – if you can afford it.

You’ll get a guaranteed rate of growth on your investment cash value. You’re also guaranteed to get a payout upon your death. Finally, your premium will stay the same during your lifetime.

However, dividends are not promised. This means that if you need cash on a yearly basis from your policy, this isn’t a good fit for you.

It’s also pretty risky because there are investments involved. Plus, it’s much more expensive up front and carries high penalties.

For many, whole life insurance is just too complicated and expensive. So, what can you do?

Term Life Insurance

For many, term life insurance is the best cheap life insurance policy option out there.

Instead of giving you coverage for your entire life, you are covered only for a specific amount of time.

Basically, if you die before an expected time, your heirs and family will be covered. Plus, they’ll get a death benefit that goes to them directly.

We love that you can select the term you’d like to be covered for. Usually, that’s anywhere from 10-30 years.

Plus, there are much lower fees associated with term life insurance. In general, it’s the more affordable option – plus, it offers you great flexibility. You’ll also pay a lower premium, and that premium usually stays fixed.

Even better?

Term life insurance policies are renewable. This means that, when your term runs out, if you get a renewable policy, you don’t have to re-qualify for coverage if you want to renew it.

Compare Your Quotes

Instead, really take the time to shop around. We know that it may seem like it takes too much time, but comparing quotes can really make a difference.

If you don’t have the time to go in person to several agencies, you can always do a little online research instead.

Plus, doing your research avoids buyer’s remorse and prevents you from getting hit with any fees should you cancel your policy to move to a more affordable one.

Get it right the first time instead.

Avoid Non-Mandatory Medical Tests

It may not always be fair, but it’s the truth: if you have serious health conditions, the costs of your policy can rise.

Even if you think you’re taking good care of yourself, a test can sometimes have some unexpected results – that can drive up your costs.

Instead, look into options that don’t require you to take a medical examination in order to get the coverage you need.

Keep Following The Law

Yes, it’s true – if you’ve been to prison, your record may make it that much harder for you to find the coverage you need.

If you’ve served time, there are options. However, when you go in to meet with your agent, be prepared to discuss the following things:

Your crime

The length of your sentence

How long it’s been since your release date

Whether or not you’re currently on parole

However, many term life companies are still interested in offering cheap life insurance to those who have served some time. If you don’t have a record, do your best to keep it that way.

Keep Your Eye Out For Riders

Even if you get an offer that sounds tempting, resist the urge to add a rider onto your cheap life insurance policy.

These riders can be things like policies for your children, speeding up your death benefit, or even offering you a lump sum for any medical expenses you’ve incurred if you’re terminally ill.

Of course, you may need some of these riders – especially if you have children. Again, always walk into a meeting with a level head and think about what’s really necessary.

Do It Now

It’s not just your age that impacts the coverage you’re able to get.

The reality is that it’s best to take a “the sooner, the better” approach to life insurance because you never know when your current health, financial, or even personal situation might change.

When you’re young, in good health, and working is the best time to take out a life insurance policy. You could get sick at any time. If you wait until you develop a serious medical problem to seek coverage, you’re going to see your costs soar.

Look Into Combining Types Of Coverage

Are you also interested in looking to insure your car, your home, or pretty much anything else?

Then you’re in luck. These days, it’s often possible to “bundle” these coverages in with your life insurance policy. It’s an incredible way to save money and to protect even more of the things you love.

Make Sure Your Insurance Company Is Reputable

Finally, this is the most important step in looking for cheap life insurance.

You can be offered the best policy in the world…but if the company can’t actually pay you what they’re offering, you’re out of luck – and so is your family.

When you’re looking at your options, always make sure the company you’re considering is financially strong and solvent. You can often do this online, with a simple inquiry into an agency that rates insurance providers.

Ready To Get Your Cheap Life Insurance Policy?

No matter what you initially thought, we hope this guide to affordable life insurance has proved to you that coverage is well within your reach.

There’s no excuse for waiting until it’s too late to start thinking about what will happen to your family if something happens to you.

Instead, follow the guidelines we listed above to make sure you get the best rates, work with the top insurers, and pick the policy that’s right for you.

Looking for more no-nonsense and plain-English advice about life insurance?

14 Responses to When You Should Consider Cheap Life Insurance

SpenceRollins

June 14, 2017 at 4:51 pm

It’s good to know that term life insurance is the way to go for me. Although it is quite worrying that I should avoid any non-mandatory medical tests for the time being or at least find insurance that doesn’t require one.

The tips of the article are awesome. Life is pretty unpredictable. So, having a life insurance is must, especially for the breadwinner of the family.
Here, I agree that sometimes the premium is high which makes people little apprehensive to go for one. But, financial safety of the family is essential as well. And, like the article mentions, “the sooner, the better”, it helps to reduce the premium to a large extent.

Thank you for this post. Right now I am looking for a “term” life insurance to cover for me and my family. I kept searching but I always stumble on those whole life insurance companies. There are so many to choose from in the internet that offers affordable payment scheme.

This is a well-written article stressing the importance of getting a life insurance in a younger age. Now I understand that sooner we get, the cheaper and easier to get it as I had the wrong assumption till now it is fine to get a life insurance after the age of 50. Thanks for the insightful points.

Thank you for this wonderful article as now I regret not taking an insurance when one person approached me with the schemes and the values available in getting a life insurance. I didn’t know that when you take a life insurance at a younger age it won;t cost much and it the cost will increase with aging. I will immediately start working on to get a life insurance as soon as possible.

The reason why I’ve never bought a life insurance is because I’ve heard some horror stories about insurance in general– from insurance companies making it hard for beneficiaries to get the benefits to insurance companies lengthening the years to pay the premium. I always feel there’s a loophole in the contract that I will not catch…

Thank you for this very informative post. My husband and I started paying for our life insurance when we were in our mid 30’s. That’s not exactly young, but at least we managed to do it before it is too late.